This is taken from Ebay listing #4302799132. This is a two bedroom
house in Charolette North Carolina currently listed at $88,900. The
unit currently has tenants that pay $550 per month. There is no
information about taxes so a low estimate is taken of around $500 a
year. The listing does not mention the need for repairs so we will
exclude them from our calculation.

Lets see if the Real Estate Offer Generator can determine whether or
not this is a good deal.

The first step is to determine what our Net Operating Income is by
taking into account the rent, all the expenses including management,
maintenance, and vacancy reserve as well as a return on our down
payment and any required repairs. The Net Operating Income is
computed in the Net Operating Income
screen.

After the NOI has been
computed and adjusted for the return on the down payment the next step
is to see how much can be offered for this property so that we can
still get our desired return and meet all expenses. This calculation
is done in the Offer Generator screen.

The most that can be
offered for this property financing it for 30 years at 7.5% interest
is only $54,042.12. If the seller is presented with this offer and
accepts it then you have turned a bad deal into a good one. If the
seller won't budge on the price then this is not a good deal and it is
in your best interest to keep on looking.

Testimonials
I started using your Real Estate Offer Generator application. I found that the tool allows me to focus on the creative aspects of real estate financing and all but eliminates tedious number crunching. I can now quickly compare different financing scenarios and create offer letters with confidence. Great job!

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